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Análisis comparativo de la información sobre IA en los informes anuales de las empresas Ibex 35 y OMX 25

Madrid, 27 de noviembre de 2019

Enrique Bonsón Presidente de la Comisión Nuevas Tecnologías y Contabilidad de AECA Domenica Lavorato Universidad de Napoles “Parthenope”, e-mail: [email protected] Questions

Are companies disclosing about AI? Where?

What are they talking about? General? Risks? Ethics? Products/apps? Projects? Units/labs?

Which are the best reporting examples?

Which are the projects or units they have launched?

Which are the products they have developed or they are using?

2 Research Methodology

1. We downloaded all the official reports of each company 2. Within each report we searched all the mentions for the words “artificial intelligence”, “machine learning”, “deep learning” and “big data”. 3. We classified each mention within each pre-established categories.

3 Results- IBEX 35

Companies Document type Categories General Statement Projects Ethics Products/Apps Risk/Impact Unit/Labs TOTAL Sustainability report 1 1 Annual report 1 1 ACS Integrated annual report 1 1 AENA CSR report 0 AMADEUS Global report 1 1 1 1 4 ARCELORMITTAL Integrated Report 1 1 2 B. SABADELL Annual report 0 B. SANTANDER Annual report 1 1 2 Annual report 1 1 2 Integrated report 1 1 1 3 BBVA Integrated Report 1 1 2 CAIXABANK Annual report 1 1 1 3 Integrated annual report 1 1 CIE AUTOMOTIVE Annual report 1 1 ENAGAS Annual report 1 1 2 Sustainability report 0 Sustainability report 1 1 1 3 Integrated annual report 1 1 1 3 Annual report 0 IAG Annual report 1 1 2 Annual Financial Report 1 1 2 Annual report 1 1 1 3 INDRA CSR report 1 1 INM COLONIAL Integrated annual report 0 Integrated report 1 1 MASMOVIL Annual report 1 1 MEDIASET Annual report 1 1 MELIA Integrated annual report 1 1 2 MERLIN Management report 0 CSR report 1 1 RED ELECTRICA Sustainability report 1 1 Management Report 1 1 1 3 Annual report 1 1 TELEFONICA Management report 1 1 1 1 1 5 Annual report 0 22 12 1 17 0 3 55 4 Descriptive statistic- IBEX 35

Types of disclosure Percentage of disclosure Companies Aena, B. Sabadell, Ence, Grifols, Inm. Colonial, Merlín, No disclosure 20% Viscofan Just a general statement 20% ACS, Cellnex, CIE Automotive, Indra, Mediaset, Naturgy, Red Electrica Acciona, Acerinox, ArcelorMittal, B. Santander, Bankia, 1-2 categories 37% BBVA, Enagás, IAG, Iberdrola, MAPFRE, MASMOVIL, Melia, Siemens Gamesa 3 categories 17% Bankinter, CaixaBank, Endesa, Ferrovial, Inditex, Repsol ˃ 4 categories 6% Amadeus, Telefónica

5 Results- OMX Helsinki 25

Companies Document type Categories General Statement Projects Ethics Products/Apps Risk/Impact Unit/Labs TOTAL Annual Review 1 1 DNA Annual report 1 1 2 CORPORATION Annual Report 1 1 1 3 Annual Report 1 1 HUHTAMAKI Annual Report 1 1 OYJ Annual Report 0 Annual report 1 1 1 1 4 CORPORATION Annual report 0 Annual report 0 METSA BOARD Sustainability Report 1 1 METSO OYJ Annual Report 0 BANK Annual report 1 1 1 3 OYJ Annual Report 1 1 Annual report 1 1 1 1 1 5 ORION OYJ Annual report 0 OYJ Annual Report 0 OUTOKUMPU OYJ Annual Report 1 1 SAMPO OYJ Annual Report 1 1 2 OYJ Annual report 1 1 1 3 Annual report 1 1 2 TIETO OYG Annual report 1 1 1 1 4 NOKIAN RENKAAT Financial Review 0 UPM KYMMENE Annual Report 1 1 Annual Review 0 WARTSILA Annual report 1 1 2 15 6 6 9 0 1 37 6 Descriptive statistic- OMX Helsinki 25

Percentage of Types of disclosure Companies disclosure Kemira, KONE, Konecranes, Metso, Orion, No disclosure 32% Outotec, Nokian Renkaat, Valmet Just a general statement 24% Cargotec, Fortum, Huhtamaki, Metsä Board, Neste, UPM DNA Oyj, Outokumpu, Sampo, Telia Company, 1-2 categories 20% Wärtsilä 3 categories 12% Elisa, Nordea Bank, Stora Enso ˃ 4 categories 12% Kesko, Nokia, Tieto

7 Results- IBEX 35 and OMX Helsinki 25

IBEX 35 percentage OMX Helsinki 25 Types of disclosure of disclosure prcentage of disclosure No disclosure 20% 32% Just a general statement 20% 24% 1-2 categories 37% 20% 3 categories 17% 12% ˃ 4 categories 6% 12%

8 Results- IBEX 35 and OMX Helsinki 25

IBEX 35 percentage of OMX Helsinki 25 Categories companies percentage of companies General Statement 63% 60% Project 34% 24% Product/App 49% 36% Ethics 3% 24% Unit 9% 4% Risk 0 0

9 General Statement

The mentions to this category usually refer to the rapid technological change; the new technological trend that are penetrating all the sectors; the impact that new disruptive technologies have on the environment and on the business; the benefits that derived from the adoption of new technologies; the transformation tools that affect all business in interconnected way.

10 Projects- IBEX 35

Partnership projects to engage with promising start-ups.

Project Company Chair in Smart Industry Acerinox Amadeus Explore Amadeus Start4Big CaixaBank Enagás Emprende Enagás PERSEO Iberdrola Wayra Telefónica

11 Projects- IBEX 35

Project Company Excellence 360°: installation of sensors to improve process control & production and sales optimization Acerinox

Initiatives to include artificial intelligence in bank operations (process transformation) Bankinter Digitalization of the Contact Center. Introduction of an assistance system for the operation in thermal power plant fleet. Endesa Implementation of predictive maintenance tools in Combined Cycle Plant. Predictive diagnostic: detection and diagnosis of faults in power plants. Prediction of consumer habits and passenger traffic patterns. Ferrovial

ASPA: detection of failures in farms, photovoltaic plants and hydroelectric power stations Iberdrola Cantera Tecnológica Programmes for Big Data (DATA_GO) and Development (ZARA_CODE). Inditex PRECOG Cognitive Prediction for Business Continuity: to roll out a big data platform and an intelligent semantic MASMOVIL information analysis engine Management optimization of Tarragona refinery. Analytics Polyolefins: to anticipate in real time the quality of the product and to implement predictive and Repsol automatic plant parameter control system.

Analysis of online abuse Telefónica 12 Projects- OMX Helsinki 25

Partnership projects to engage with promising start-ups/ institutions

Project Company Elisa Artificial Intelligence Co-Creation Challange Partnership with the Finnish Center for Artificial Intelligence to develop research Elisa project Distinguished Academic Partner program Founding partner of a new Centre for Mobile, Wearable Systems and Augmented Nokia Intelligence, based in Cambridge’s Department of Computer Science and Technology University Donations Program Nordea Ventures Nordea Bank Artificial Intelligence Accelerator Programme Tieto

13 Projects- OMX Helsinki 25

Project Company Develop tools for store management and use AI in selection management and Kesko marketing Data scraping to access CO2 data in publicly available supplier reporting Stora Enso Experiment to prove that AI can be used for targeting services and to identify individuals in need for support, ultimately to prevent social exclusion of the Tieto young.

14 Products/applications- IBEX 35

Category Description Company Fraud Amadeus Defects detection to enable predictive maintenance Arcelormittal Money laundering and terrorism financing B. Santander Detection Threats in cyber security Bankia Money laundering BBVA Product safety problems and harmful substances INDITEX Threats to business operations Telefónica Diagnosis of the turbines’state of health Acciona Diagnosis Diagnostic sensors on wind turbin generators Siemens Gamesa

Big Data Analytical Platform to optimise data analytics Bankia Cognitive Platform to automate processes Bankia Optimisation Customers transaction inquires Bankia “Now”, online banking app CaixaBank Optimisation of congestion problems Ferrovial Improve reliability of the lifecycle of catalysts Repsol Technical Data Management Framework Amadeus Detection of non-technical losses Endesa Prediction Automatic assessment of reports Endesa Demand INDITEX Valuation of vehicle damages MAPFRE 15 Products/applications- IBEX 35

Category Description Company Personalized offers to travellers Amadeus Recommender Show offers from advertising partners Amadeus System Terminal Recommender Telefónica Customer-based network services Telefónica Chatbot Amadeus Smart Contact Centres through voice print Bankinter Chatbot Smart Assistant BBVA Chatbot CaixaBank Speech Cognitive assistant Call Center,Virtual assistants for customers, Voice assistant for CaixaBank Recognition households Chatbot integrated into social media platform IAG Melia Virtual Assistant Melia Aura Digital Assistant Telefónica Smart MVS (Management Valuation System), valuation of health and safety at Acciona infrastructure Valuation Defect recognition and quality assurance Arcelormittal Credit scoring Bankia Datapool to improve risk scoring model CaixaBank

16 Products/applications for third party- IBEX 35

Telefónica-LUCA has developed AI products / applications for third parties: smart agro, smart urban lighting, smart efficiency solutions, fleet management, etc.

17 Products/applications- OMX Helsinki 25

Category Description Company Detection AI-based control of IT service request Elisa K-RUOKA: online service and mobile app based on customer needs Kesko Optimisation Artificial intelligence-based optimization of the ferrochrome smelter Outokumpu Finance delivery robots to reduce costs and save time from transactional work to analytics Stora Enso and strategic business support Optimising installation performance to support customer business decisions Wärtsilä Cognitive Analytics for Customer Insight software to predict customer satisfaction and Prediction provide intelligent, digital-time recommendations to address subscriber issues Nokia

Personalised customer service DNA Recommender Customer service Elisa System Marketing targeting and personalisation Kesko Chatbot Elisa Speech Chatbot Nordea Bank Recognition Chatbot in Human Resources Nokia

18 Products/applications for third party- OMX Helsinki 25

Nokia and Tieto develop AI products / applications for third parties.

Product/app Company

Connected Intelligence: connect people, machines and data intelligently, to enable the companies to predict customer behaviors, personalize experiences and act in digital time. Crowdsourcing platform. AVA cognitive services platform: offering predictive and proactive services across care and operations. Nokia Open Ecosystem Network is a free-to-use open innovation environment. It is centered around connecting companies and individuals to share their real-life problems, insights, assets and innovative solutions.

Tieto Intelligent Wellbeing is a data-driven healthcare and welfare solution (preventive healthcare). Tieto Credit rating analysis.

19 Units/Labs

IBEX 35 OMX Helsinki 25

Amadeus and Telefonica created innovation labs. Nokia acquired SpaceTime Insight Inc., a Enagás created Smart Energy Assets: a start-up software-based company. that manages gas, based on latest-generation Nokia created NokiaBell Labs (research artificial intelligence algorithms. and development labs) Telefonica created LUCA: Telefonica's Big Data and Artificial Intelligence services unit

20 Risks

0 mentions Some of the companies report on the potential of AI as a tool to mitigate other risk categories or the impact that AI can have on business or interested parties. But no company refers to AI as a risk.

21 Risks/Impact- IBEX 35

Source: Red Electrica Sustainability Report 2018 22 Risks/Impact- IBEX 35

23 Risks/Impact- IBEX 35

24 Ethics

Ibex 35 OMX Helsinki 25

Telefonica: Artificial Intelligence Principles DNA: Ethical Principles for the use of AI Kesko: Ethical principles for utilizing artificial intelligence Nokia: European Commision Ethics Guidelines for Trustworthy AI Sampo: Artificial Intelligence with responsibility

Telia Company: Guiding Principles on trusted AI ethics Tieto: AI ethics guidelines

25 AI in

In 2017, Minister of Economic Affairs appointed a steering group to prepare a proposal for an artificial intelligence programme for Finland. Finland’s Artificial Intelligence Programme challenges enterprises to create ethical principles for AI.

26 Principles to develop ethical AI

Deutsche DNA Elisa Kesko Nokia Sampo Sap Telia Telefonica Tieto Telekom Human & Value- X X implicit X X X X X X X Centric Non-discrimination & implicit X X X X X X X X X Fainess Transparency & X X X X X X X X X X Explainability Responsibility & X implicit X X X X implicit X implicit Accountability Privacy & Data X X X X X X X implicit X Governance Technical Robustness & X X X X X X X X Safety Continuous Reviewing X X & Dialogue Social & Environmental X X X X X X X Wellbeing Deutsche Telekom- Guidelines for Artificial Intelligence

28 DNA- Ethical Principles for the use of AI

29 Elisa- Ethical Principles for Artificial Intelligence

30 Kesko- Ethical principles for utilizing artificial intelligence

31 Sampo- Artificial Intelligence with responsibility

32 Sap- Guiding Principles for Artificial Intelligence

33 Telefonica- Artificial Intelligence Principles

34 Telia Company- Guiding Principles on trusted AI ethics

35 Tieto- AI ethics guidlines

36 A taxonomy to assess AI level of development

Activity Risk and ethic No activity Low Medium High concerns IBEX 35 40% 17% 29% 14% 3%

OMX Helsinki 25 56% 20% 12% 12% 24%

37 Conclusions

Companies operating in the telecommunications and IT sectors have developed their ethical principles for the use of artificial intelligence.

The percentage of Finnish companies (24%) in the adoption of AI ethical principles, compared to Spanish companies (3%), is explained by the Finnish government's intervention in promoting a trusted AI.

Government policies play an important role not only in promoting AI investment, but also in developing and enforcing standard that encourage innovation while safeguarding society.

In particular, Spanish companies needs a call for action to improve their ethical use of artificial intelligence.

38 Thanks for your attention!

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